Downstream Inquiry Activity Remains Low, Manganese Ore Market Consolidates [SMM Manganese Ore Daily Review]

September 2 news: Northern ports: Australian lump ore at 40.3-40.8 yuan/mtu, flat WoW; South African semi-carbonate at 34.2-34.7 yuan/mtu, flat WoW; Gabonese ore at 39.1-39.9 yuan/mtu, flat WoW; South African high-iron ore at 29.4-29.9 yuan/mtu, flat WoW; South African medium-iron ore at 35.1-35.6 yuan/mtu, flat WoW.

Southern ports: Australian lump ore at 39.8-40.5 yuan/mtu, flat WoW; South African semi-carbonate at 36.3-36.8 yuan/mtu, flat WoW; Gabonese ore at 39.6-40.1 yuan/mtu, flat WoW; South African high-iron ore at 30.5-31 yuan/mtu, flat WoW; South African medium-iron ore at 36.5-37.2 yuan/mtu, flat WoW.

Supply side, Comilog and CML announced October manganese ore offers of overseas miners remained flat MoM, with active buying sentiment. It is reported that Gabon shipment volume declined this round, and stable overseas prices provided favorable support for long-term manganese ore costs, leaving miners reluctant to sell spot cargo at low prices.

Demand side, recent SiMn futures showed a fluctuating trend in the doldrums, with sluggish market sentiment. In north China, limited inquiries and sluggish port transactions were observed due to vehicle restrictions during the military parade, awaiting transport recovery post-parade and downstream restocking demand release. In south China, SiMn alloy plants remained cautious in shipments amid persistently weak futures, with no significant positive factors. Alloy factories also adopted a prudent approach to manganese ore procurement, reflected in reduced inquiry activity and intensified price pressure, coupled with miners' reluctance to sell at low prices, leading to a stalemate in the manganese ore market.

Inventory side, overseas manganese ore arrivals declined, while downstream SiMn enterprises maintained high operating rates, resulting in a slight reduction in port inventory as of last Friday.

Overall, the manganese ore market recently maintained a consolidating trend with sluggish port transactions and stable prices. The ore prices are expected to maintain a fluctuating trend going forward, mainly depending on overseas mine shipments and rigid demand support from downstream SiMn alloy.